Royal Bank of Canada announced a 4 cent increase of their quarterly dividend. The dividend is increased from C$0,98 to C$1,02.
This is an increase of 4,1%. I have 21 shares Royal Bank of Canada. As a result my yearly estimated dividend income will increase with C$2,18.
Based on the new dividend my yield on cost is now 3,48%. This is the 17th dividend increase in 2019 for me.
This week I bought 91 shares AGNC Investment Corp at a price of $17,60. AGNC is a mortgage REIT. AGNC is an internally-managed mortgage REIT which is predominantly investing in agency mortgage-backed securities.
AGNC Investment Corp is currently paying a monthly dividend of $0,18. On a yearly basis the yield is 12,3%. As a result of the 91 shares I purchased, my yearly estimated dividend income increased by $196,56.
Mortage REIT’s are a very specific investment category. Mortage REIT’s provide financing for real estate by purchasing or originating mortgages and mortgage-backed securities. mReit’s are basically earning their income by the difference between the interest they receive on the mortages or mortage-backed securities they own and the interest they pay on their loans.
Mortgage REITs often attract short term loans against a low interest rate to originate long term mortgages or buy long term mortgage-back securities. As a result mREIT’s are extremely sensitive to interest rate increases, because this will reduce the spread between the interest they receive and pay.
I own shares in REIT’s in various categories. Already for a long term I have AGNC investment corp on my watchlist to also have exposure to the mortgage REIT category.
I have to say that I consider it difficult to understand a company like AGNC. Normally when I read the annual report or other presentations of the company it’s rather easy to get an idea about what a company is doing from the brands they own, the products they produce or the list of properties they own.
In the annual report of AGNC is a list with the duration and interest rates of their assets, but I consider it difficult to see in this what the MOAT is of a mortgage REIT. AGNC is mainly investing in securities backed by single-family residential mortgages and collateralized mortgage obligations guaranteed by government agencies Fannie Mae, Freddie Mac, and Ginnie Mae. For this reason and their monthly payments I decided to add AGNC Investment Corp as mREIT to my portfolio.
I will enjoy their monthly payments, but I don’t expect any capital appreciation from this investment. Also I realize that rising interest rates will mean a dividend cut. To keep a balanced portfolio I will probably add another mREIT, but I doubt these will ever be among my biggest positions as mREIT’s are able to often bring high yields, but also volatile yields.
Today Coca Cola announced a 2,6% increase of their quarterly dividend. As a result of this increase the dividend is up from $0,39 to $0,40 per quarter.
I have 39 shares Coca Cola so as a result my yearly estimated dividend income increased with $1,36. Yield on cost is now 3,60%.
This dividend increase is slightly disappointing for me, because I expected a 2 cents increase just as in previous years. Nevertheless I’m happy with the 16th dividend increase this year.
Amsterdam Commodities (Acomo) announced a decrease of their final dividend from €0,70 to €0,60. As a result my yearly estimated dividend income is decreasing by €4,50.
The full year dividend is now €1,00 instead of €1,10.
The net profit declined from €32.5 to €31.1 mainly due to the increase of declining commodities prices.
Yield on cost will now be 3,94%. This is the first dividend decrease this year. I keep Acomo in my portfolio as the change in net profit is modest. Nevertheless I will be cautious with the next profit report to monitor if I need to change my position from ‘hold’ to sell.
Aegon announced an increase of their half year dividend from €0,14 to €0,15. This is an increase of 7,1%.
I have 270 shares Aegon. As a result my yearly estimated dividend income increased by €5,40.
Due to the increased dividend my yield on cost will be 5,77%.
Aegon is the 14th company in which I own shares which is increasing their dividend in 2019.
Today Flow Trades announced that the interim dividend will be increased from €0,35 to €1,00. I have 50 shares flow traders so my yearly estimated dividend income will increase by €32,50.
Yield on cost of my Flow Traders shares is now 7,24%.
This is dividend increase number 13 this year.
Yesterday l’Oreal announced an increase of their yearly dividend from €3,55 to €3,85. This is an increase of their dividend by 8,5%.
I own 6 shares so my yearly estimated dividend income is increasing with €1,80. My yield on cost is now 2,22%.
l’Oreal is already the 12th company increasing their dividend payment this year.
Nordea Bank announced an increase of their annual dividend from €0,68 to €0,69. As a result of the 220 shares I own, the dividend increase is increasing my yearly dividend income with €2,20.
Yield on cost of my Nordea shares is now 8,9%.
Nordea is the 11th dividend increase in 2019 for me.
During the presentation of 2018 numbers ING announced an increase of their final dividend from €0,43 to €0,44. As a result the annual dividend over 2018 will increase to €0,68.
As a result of this dividend increase my yearly estimated dividend income will increase with €2,00.
ING is the 10th company in which I own stocks who communicated an increase of their dividends.
After the dividend increase the yield on cost of my ING shares will be 6,08%.
Simon Property Group announced an increase of their quarterly dividend from $2,00 to $2,05.
I own 16 shares of Simon Property Group so the dividend increase results in $3,20 additional dividend income per year.
Due to the dividend increase the yield on cost of Simon Property Group is 4,99%.